Bill
Ackman’s latest hit at Herbalife hasn’t really moved things anywhere. In fact
it missed to make a mark on Wall Street, with stocks soaring by 25% for the
company.

Ackman’s
told an audience of 500 at the New York auditorium and thousands tuned in via
webcast that Herbalife is nothing but a criminal setup that lures in
minorities, considers non-existent customers while promising business and profits,
and breaks labor laws. He further went on to state that Herbalife runs on a
pyramid scheme that makes the members earn from recruiting new members instead
of selling the products.

The
presentation made on Tuesday also shed light on Herbalife’s method of
recruiting freshers, often Latinos, to work for free as trainees before giving
them the actual distributorship.

Ackman’s
research worth USD 50 million has video, audio, and other data that has been
collected from 240 Herbalife clubs.

Herbalife
has only rejected these claims. John DeSimone, the nutrition company’s CFO
stated that all these claims are completely fabricated, and they have
commissioned a study to vindicate the company standing.

Ackman
said the probing officials from FBI, Federal Trade Commission, and Securities
and Exchange Commission are taking far too long than expected against
Herbalife.

However, Vijay
Marolia, a fund manager at Regal Point Capital Management said that the
much-hyped presentation by Bill Ackman was over-promised to begin with, and
thoroughly under-delivered to end with. Some more hedge fund managers seconded
this sentiment and retained the stock, despite Ackman’s appeal to every
investor to sell it.